Evaluation of the Impact of Divestment of Multinationals from Nigeria on Drilling and Well Construction
Resumen
Nigeria is one of the largest oil-producing countries in Africa and it relies heavily on revenues from crude oil and natural gas to fund her budget and expenditures. More drilling and well construction projects are needed to increase her production capacity and these are costly and high-risk investment mostly undertaken by the international oil companies (IOCs) even prior to the first discovery in 1956. However, recent turn of events shows that the IOCs are systematically and gradually divesting from the Nigerian oil and gas sector. They have cited various reasons ranging from hostile upstream petroleum environment arising from the menace of disruptions to their operations by local communities, insecurity within their operation sphere, crude oil theft and energy transition, which are a global advocacy to curb carbon emission. The divestment is causing an impromptu transformation in the Nigerian Oil Industry and this appears to be significant. The benefits so far are that Nigerian independents are emerging and playing in both onshore and shallow waters of the oil- and gas sector. Direct government intervention in energy infrastructure in terms of investments and reforms has shown to be one key factor to have driven transitions in Nigeria. This study examines the capacities of both the government and the local independents financially, technical and operational capability to sustain drilling and well construction in the sector with the divestment of the IOCs.
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Referencias
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